|Traded as||Euronext: SAF|
CAC 40 Component
|Philippe Petitcolin (CEO)|
Ross McInnes (Chairman)
|Products||Rocket and aircraft engines and equipment, defence electronics, avionics, navigation system, communications systems, satellites|
|Revenue||€21.05 billion (2018)|
|€3.02 billion (2018)|
|€1.98 billion (2018)|
|Total assets||€40.62 billion (end 2018)|
|Total equity||€12.30 billion (End 2018)|
Number of employees
Safran S.A. is a French multinational aircraft engine, rocket engine, aerospace-component and defense company. It was formed by a merger between the aircraft and rocket engine manufacturer and aerospace component manufacturer group SNECMA and the security company SAGEM in 2005. In 2018 Safran took control of Zodiac Aerospace, significantly expanding its aircraft equipment activities. Its headquarters are located in Paris. Employing over 91,000 people and generating 21.05 billion euros in sales in 2018, Safran operates in the aircraft propulsion and equipment, space and defense markets. The company is listed on the Euronext stock exchange and is part of the CAC 40 and Euro Stoxx 50 indices.
The name Safran was chosen from 4,250 suggestions, including 1,750 proposed by employees. As a holding company for many subsidiaries, the name was deemed suitable for the suggestion of direction, movement, and strategy. Safran translates as rudder blade and as saffron, which the company highlights as one of the catalysts for early international trade.
In 1905 Louis Seguin created the company Gnome. Production of the first rotary engine for airplanes, the Gnome Omega, started in 1909. This company merged with the Le Rhône, a company created in 1912 by Louis Verdet, to form the Gnome et Rhône engine company. Gnome & Rhône was nationalized in 1945, creating Snecma. In 2000, this company gave its name to the “Snecma Group”, and carried out a number of acquisitions to form a larger group with an array of complementary businesses.
Sagem (Société d’Applications Générales de l’Electricité et de la Mécanique) was created in 1924 by Marcel Môme. In 1939, Sagem entered the telephone and transmissions market by taking control of Société anonyme des télécommunications (SAT). It acquired Société de Fabrication d’Instruments de Mesure (Sfim), a measurement instrument specialist, in 1999. However, by 2008 Sagem Mobile and Sagem Communications had been sold. Sagem Mobile became Sagem Wireless in January 2009.
The Safran Group was created on May 11, 2005, with the merger of Snecma and Sagem SA.
In June 2014, Arianespace CEO Stephane Israel announced that European efforts to remain competitive in response to SpaceX's recent success have begun in earnest. This included the creation of a new joint venture company from Arianespace's two largest shareholders: the launch-vehicle producer Airbus and engine-producer Safran.
By May 2015, Safran had created with Airbus Group a launcher joint venture called Airbus Safran Launchers. This entity is currently developing the Ariane 6 launch vehicle for initial flights in the 2020s.
In January 2017, Safran initiated a takeover of the aircraft interior supplier Zodiac Aerospace to create the third largest aerospace supplier with $22.5 billion revenue, behind United Technologies with $28.2 billion and GE Aviation with $24.7 billion; the new group will be 92,000-employee strong, with 48% of its business in aircraft systems and equipment, from landing gears to seats, 46% in propulsion and 6% in defense.
In February 2018, Safran took control of Zodiac Aerospace, significantly expanding its aircraft equipment activities. Zodiac Aerospace has 32,500 employees and generated sales of 5.1 billion euros for its fiscal year ended August 31, 2017.
On June 4, 2018, Boeing and Safran announced their 50-50 partnership to design, build and service APUs after regulatory and antitrust clearance in the second-half of 2018. This could threaten the dominance of Honeywell and United Technologies.
The Safran group is divided into three main branches:
The aerospace propulsion branch groups all operations concerning the propulsion of aeroplanes, helicopters, missiles, and launchers, for the civil aviation, military aviation, and space markets: design, production, marketing, testing, maintenance, repair, and overhaul (MRO).
At the October 2018 NBAA convention, Safran presented its ENGINeUS electric motor range up to 500 kW (670 hp) designed for electric aircraft, starting with a 45 kW (60 hp) one with integrated control electronics, with an energy efficiency of over 94% and a power-to-weight ratio of 2.5 kW / kg at 2,500rpm and 172 N⋅m (127 lbf⋅ft) of torque, for a 18 kg (40 lb) weight with the controller, 12 kg (26 lb) without. Flight-testing may happen in 2019 or 2020.
The aircraft equipment branch groups all design, production, sales, and support operations for systems and equipment used by civil and military airplanes and helicopters.
The defense branch operates in the civil, military, and space markets, and covers the following areas: inertial guidance and navigation equipment (SIGMA INS based on ring laser gyro sensors), optronics systems and equipment, avionics systems, UAV (unmanned aerial vehicle) systems, air-land systems and equipment.
|Net income, Group share (M€)||177||406|
|Cash flow (M€)||1,003||1,221|
|Self-financed R&D (M€)||334||401|
The biggest change in Safran's shareholder profile is the increase in publicly held shares (from 36.9% in 2008 to 54.1% in 2012).